4 ms·
That’s true but not super relevant. The important point is that prices become dissociated from local incomes if a laundering buyer agrees to a price that’s much
by kareemm 6y ago
That’s true but not super relevant. The important point is that prices become dissociated from local incomes if a laundering buyer agrees to a price that’s much higher than what a local would pay.
- three14 6y agoPrices are still associated with the prices that a local will pay. Money launderers don't want to lose dirty money any more than anyone else wants to lose clean money. They depend on there being a buyer at a price near what they paid. I suppose you could have a market that was so full of money launderers that they simply depend on flipping it to the next money launderer, but ordinarily, they depend on there being at least some proportion of locals who will pay the new, higher price, or they aren't guaranteed a buyer.
- jbay808 6y agoA local who sold a home at an inflated price can often afford to buy another one at an inflated price. And it also attracts other generally wealthy investors looking to get in on a hot market.